December 7, 2022

Financial watchdog in crackdown on video game-like trading apps

Britain’s financial watchdog to launch crackdown on video game-style trading appsBy Lucy White for the Daily Mail Posted: 4:50 PM EST, November 21, 2022 | Updated: 4:50 PM EST, November 21, 2022

The financial watchdog plans to crack down on trading apps that make investing look like a game. This was often because the apps frequently sent notifications with the latest market news or gave users points, badges and celebratory messages on the app to transact. Repression: The Financial Conduct Authority said it was “concerned” that some investment apps were encouraging savers “to take action against their own interests”. According to the FCA, investors using apps with these features “were more likely to invest in products beyond their risk.” appetite’. The so-called gamification of trading could, in some cases, be used to better engage app users, the FCA said. But currently, it is used in a way that misleads customers or leads to problematic behaviors, such as addictions. said: “Certain product design features could contribute to problematic or even gambling-like investor behavior. We expect all companies to review and, where appropriate, make improvements to their products in based on these results. The use of trading apps has exploded in recent years. The FCA said 1.15 million accounts were opened by customers of four undisclosed trading apps in the first four months of 2021 alone – nearly double the amount opened with all other retail investment services combined.

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